The recent surge in gold prices in the early hours of June 12 was primarily triggered by the announcement of the cancellation of a comprehensive strike against Iran. The timing of last night's move was also particularly opportune. Firstly, gold had been in a sustained and extreme decline throughout June, which had completely shattered bullish confidence, leading the majority of the market to be pessimistic about any gold rally. In fact, a significant number of participants were blindly continuing to chase short positions at lower levels. Secondly, the next major anticipated market-moving event is the upcoming Federal Reserve meeting scheduled for early next Thursday. The Fed is unlikely to immediately pressure the market and raise interest rates right from the start. Therefore, the market's excessive speculation about a rate hike prior to the meeting essentially planted a landmine. Once it is confirmed that there will be no rate hike, the market is likely to explode upward.

In recent days, as prices continued to fall, I have consistently emphasized key trading strategies. First, despite the extremely weak trend, it is crucial not to mindlessly short at low levels. Instead, one must closely monitor the key short-term resistance levels at 4150 and 4200. Our daily operational principle has been to only consider shorting on rebounds—taking small, short-term long positions for minor bounces and then waiting for appropriate high points to consider entering short positions. All trades have been executed with small stop-losses targeting larger profits. Consequently, we were not at all panicked by yesterday's sharp rally; in fact, we capitalized on it significantly. Second, we have been waiting for the daily chart to start printing bullish candles. As previously mentioned, only consecutive bullish daily closes can fully confirm that gold has bottomed out and that a trend reversal is likely underway. Considering this recent gold rally, it now appears that the bottoming process is essentially complete.

Returning to technical analysis, gold surged powerfully from yesterday's low of 4022 to a high of 4246, representing a gain of over 220 points in one move. From the perspective of this rally, the daily chart has firmly printed a bullish candle, and the price action has broken above the lower Bollinger Band. In the context of the current market cycle, this suggests that an upward trend is gradually initiating. The next step is to wait for the daily chart to show sustained, increasing volume on the upside. Our ultimate bullish targets can now be progressively set at 4320, 4380, and even the 4450-4480 range. Furthermore, given the current reversal pattern on the daily chart, further significant gains could extend toward the resistance zones at 4535 and 4580.

The 4-hour chart is now showing a clear contraction in the Bollinger Bands, accompanied by a price break above the middle band, which further confirms the upward trend. This rebound is expected to reach at least the 4320-4360 range in the short term. Therefore, as we head into Friday, our short-term trading strategy should gradually shift towards focusing on buying on dips. From a shorter time frame perspective, the primary key support is currently situated around the 4150-4160 level, which also served as yesterday's short-term bull-bear dividing line. Consequently, our approach today will be to rely on this support level to trade with the prevailing uptrend. The next short-term resistance for the bullish move is seen at the 4250-4320 zone.